Does a stock have to be registered to be traded?

[Investment Forum]

I was just wondering if a stock needs to have a stock symbol to be traded. Since dark pools are "the place" to trade (please see here for what they are: http://www.marketwatch.com/story/the-secret-stock-market-upstart-systems-rewrite-rules-of-trading) then does the company that issues a stock have to be listed on a stock exchange? Or even quoted to begin with on OTCBB / Pink Sheets?

Since all it takes to have a share sold is a broker, then the respective broker could certainly do it through a dark pool, although without guarantee for a sale since there is no public share value displayed anywhere.

 

[Investment Forum]

Since nobody has answered I guess I would have to elaborate a bit more on this subject. I will use two examples:

1) USA - A company to trade in the USA on the OTCBB/Pink Sheets or big exchanges NASDAQ, Amex requires according to SEC rules to become a 1934 Exchange Act reporting company.

2) UK - A company must be a PLC, then it is allowed to find a broker than can get the company public or simply advertise privately on a website for example to sell its shares.

Since the respective company in both cases is allowed to publicly trade its shares, wouldn that mean dark pool traders should be possible? Even if the company is not listed/quoted on any exchange that is regulated. A share is a share afteral, and an exchange is just an easier way to display its price.

Hope someone knows if this is possible, its an interesting thought.

 

[luckyd1976]

I was just wondering if a stock needs to have a stock symbol to be traded. Since dark pools are "the place" to trade (please see here for what they are: http://www.marketwatch.com/story/the-secret-stock-market-upstart-systems-rewrite-rules-of-trading) then does the company that issues a stock have to be listed on a stock exchange? Or even quoted to begin with on OTCBB / Pink Sheets?

Non-public companies can be traded as well...

http://www.secondmarket.com/ #1 Site for Non-Registered
http://www.transferonline.com/index.cfm?pathid=26&action=TBInfo
Most 3rd party Transfer Agents have some kind of Private Trading Board.

 

[Investment Forum]

Any info if this can also be done through the black pools? Or is that exclusively for public shares?

 

[Mr Flibble]

In the US you also have Grey sheet stocks which are below Pink sheets. I have also seen some Pink sheets stocks that have been deregistered with the SEC and yet you can still still trade them. So the answer is yes. Some examples.... SPNG spongetech deregistered and under investigation by the SEC. There are countless others.

 

[Investment Forum]

Yes but deregistration does not have to mean that there is something wrong with the company. Since SEC are natzi about their requirements for reporting one can imagine a company could be "forgetting" some of the stuff they have to report. Of course it does show in general that the company has some sort of a problem...